By Aduragbemi Omiyale
Dangote Petroleum Refinery and Petrochemicals has refuted allegations that its premium motor spirit (PMS), otherwise known as petrol, exported to other countries, is being re-imported into Nigeria.
It was claimed that the private crude oil refiner sells PMS to other African nations, especially Togo, at a lower price to the extent that when re-imported into the country, it is still cheaper than what Dangote Refinery sells to Nigerian marketers.
Reacting via a statement on Tuesday night, the management described the allegations as “baseless and unsubstantiated” because they are not “supported by verifiable trade data, commercial logic, or the operational realities of Dangote Refinery.”
The company noted that its core mandate is to strengthen domestic supply and remains a leading provider of petroleum products in Nigeria.
“Any practice that enables imports to compete directly with its own production clearly contradicts this objective,” it stated.
Dangote Refinery said “all sales contracts and tender agreements expressly prohibit the resale or re-importation of Dangote Refinery products into Nigeria,” emphasising that “the economics of the purported trade route are fundamentally flawed.”
The organisation stated that estimated logistics costs for transporting products from the refinery to Lomé and back into Nigeria range between $82–90 per metric ton. Such additional costs would significantly erode margins and render the transaction commercially unviable.
“Dangote Refinery does not provide export discounts sufficient to offset these costs or create arbitrage opportunities between export and domestic markets. Simply put, no rational producer would incur additional shipping, storage, financing, and handling costs only for products to re-enter and compete in its primary market,” it pointed out.
The management also highlighted that the refinery maintains stringent product traceability protocols, including detailed records of lifting points, nominated vessels, counterparties, and declared destinations. These measures ensure full visibility and accountability across the supply chain.
The statement insisted that any “claim suggesting that the refinery facilitates or tolerates re-importation is inconsistent with its contractual safeguards and established compliance standards.”
The refinery said it has consistently advocated for reducing Nigeria’s dependence on imported petroleum products, underscoring that encouraging or enabling re-importation would undermine local refining efforts, strain foreign exchange reserves, and weaken national industrial growth, positions that are contrary to its core objectives.
Dangote Refinery reiterated that there is no strategic, economic, or operational basis for the claim that it exports products for re-importation into Nigeria, stressing that the allegation is entirely unfounded and does not withstand scrutiny when measured against market logic, contractual frameworks, and industry practices.
The statement concluded that “Dangote Refinery remains focused on its mission to enhance energy security, support local refining, and contribute meaningfully to Africa’s industrial development.”
